The Prudential Regulation Authority's Principles for Businesses states that a firm must maintain financial resources that are:

The correct choice indicates that a firm must maintain financial resources that are adequate. This means that the firm needs to ensure that it has sufficient financial resources to meet its obligations and financial requirements. Adequate resources are crucial for a firm's stability and ability to cover liabilities, operational costs, and unexpected losses, thereby safeguarding policyholders and promoting market confidence.

The emphasis on adequacy reflects a standard that goes beyond merely having enough resources to meet current obligations; it suggests a proactive approach in managing financial resilience. Adequate resources also take into account both current and future obligations, ensuring a buffer against risks that may arise.

Other options suggest varying levels of resource management that do not align with the principles set out by the Prudential Regulation Authority. For instance, the concept of financial resources being equal to liabilities lacks the necessary margin required for sound financial management, leading to vulnerability. Similarly, having resources that are easy to liquidate does not guarantee stability if they are not adequate to cover potential risks, and maintaining resources that are less than liabilities would lead towards insolvency and financial distress. Overall, the requirement for adequacy is central to ensuring the long-term viability and prudence of a firm.